With negotiations under way, the Hailey City Council will meet again Thursday, Jan. 6 to discuss the viability of extending Hailey sewer services to Harry Rinker's proposed Peregrine Ranch development north of the city between Buttercup Road and state Highway 75.
Rinker is interested in developing 380 units on the 160-acre property, but the project would require county approval for a density that could average 2.4 lots per acre. The question Rinker faces is how best to deal with wastewater in any development scenario. He must have a plan in place before he approaches the county for any density bonuses he might request in exchange for installing a private sewer system and community housing.
Currently, the property is zoned for one unit per acre. Use of septic systems for treating wastewater is allowed.
"That is plan D," said Nick Purdy, Rinker's representative on the project. Purdy explained that Rinker is interested in working with the city in part because wellhead protection is a concern for Rinker, Hailey Public Works Manager Ray Hyde and the city council. The Peregrine Ranch is essentially upstream from Hailey drinking water sources.
Plan A is to contract with the city of Hailey for municipal sewer services in such a way that the cost of any associated sewer plant expansion does not come at an additional cost to Hailey taxpayers. Following an initial presentation in November, the city council voted to consider Rinkers' offer to pay Hailey for its sewer services to accommodate the subdivision.
"We've made the commitment to the city," Purdy said. "If they provide the service, we'll make sure there is no burden on the current residents of the city."
Hyde said without any annexations or extensions of service the current sewage treatment plant will accommodate city demand until 2019 as predicted. He also noted that Hailey taxpayers are still paying off a bond for it.
Hyde said the problem with having septic systems on city limits is that the Department of Environmental Quality has no method for policing rules about proper septic system maintenance.
"Therefore regionalization needs to be implemented," he said. "As urban density is coming up, density needs to be serviced by a central system. The EPA encourages regionalization. The cost of environmental treatment goes down if you can spread it over a larger population."
Plans B and C for Peregrine Ranch are to build a private wastewater treatment system or to apply for annexation to the city of Hailey. An annexation application would have to include the Silver Sage subdivision that lies between Peregrine Ranch and the city.
"They'd have to go with us," Purdy said.
In addition to helping to pay for a new treatment pond in Hailey, Rinker also said he could dedicate some of the associated water rights in excess of the development needs to the municipal source.
"We said, "look, we'll pay you at least what a private treatment plant would cost, plus we'll pay you additional money, your cost plus a bonus,"" Rinker said. "They welcomed that thought."
Hyde said for now the sewer system will be the focus of Thurdsay's 6 p.m. meeting.
"I don't know the capacity or quality of the well," Hyde said. "If a developer is coming to the city for sewer services I am assuming the developer already has a scheme for water."
As the city considers how to respond to Rinker's proposal, Hyde said the solution is also complex because there are a number of ways the sewer system could be expanded and regulatory factors for effluent that are subject to change and stricter limits boosting the cost of treatment.
